User Reactions Emerge Following Cost Hike for Canva's Teams Offering

In a move that has sparked controversy among its user base, graphic design platform Canva has announced an increase in the prices of its Teams product. The price hike, attributed to the company's expansion into generative AI and Magic Studio, has left many users, particularly small businesses and individuals, feeling dissatisfied.

The new pricing structure for Canva Teams sees a yearly per-person cost of $100, or ₹10 per month, with a minimum of three people required for a Teams plan. However, the cost of a five-person plan in the US has risen from $119.99 to $500 a year. It is worth noting that the price changes will not apply to Enterprise tiers or Canvas Pro.

Social media has been abuzz with complaints from users about the price hike, with some threatening to switch to competitors like Adobe. Some users are being advised to cancel their Teams plan and move to Adobe, Canvas Pro, or Enterprise tiers as they are not subject to the price increase.

Canva's user base includes millions of users who have been drawn to the platform due to its affordability. The sudden and steep price hike has left many feeling betrayed, leading some to seek alternatives to Canva's Teams product, which they consider to be overpriced compared to other designing software.

Notable alternatives mentioned include Jasper Art, RelayThat, and Figma. Despite the competitor of Canva reporting on strong price increases for the Teams product not being explicitly named in the search results, these alternatives have gained popularity as viable options.

In addition to the price hike, Canva has been integrating advanced artificial intelligence (AI) tools into its platform. The company has also acquired AI image company Leonardo in August and graphic design software firm Serif for $380 million in March.

Canva's revenue is growing rapidly, with the company's expansion into generative AI and Magic Studio likely contributing to this growth. However, the price increases have raised concerns about the platform's accessibility for small businesses and individuals, who may now find the cost prohibitive.

For the first 12 months from November and December 2024, the subscription rate will be $300 per year, with a 40% discount. After the first 12 months, the subscription will increase to $500 every year.

As the situation develops, it will be interesting to see how Canva addresses the concerns of its user base and whether the price hike will have a significant impact on the platform's popularity.